Rank Corporation purchased 60 percent of the stock of Fresh Company on December 31, 20X4. In preparing the consolidated financial statements at December \(31,20 X 4\), goodwill of \(\$ 240,000\) was reported. The goodwill is attributable to Rank's purchase of Fresh Company shares, and the parent company approach was used in determining the amount of goodwill reported.

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Determine the amount of goodwill to be reported under each of the following consolidation alternatives:

a. Proprietary theory.

b. Entity theory.

c. Current accounting practice.